Shares of the Tantech Holdings Ltd (TANH) stock were bullish in the pre-market today on May 28, 2021, following the announcement of a $7.0 million private investment by Tantech Holdings. TANH’s stock price saw a surge of 1.72% to reach $1.18 a share at the time of this writing. The per-share price of TANH stock was $1.16 with no loss or gain at the previous closing. Let’s further discuss the current happenings.
Tantech Holdings Ltd (TANH), a manufacturer of bamboo-based charcoal products in the People’s Republic of China, on May 27, 2021, announced that it is willing to sell 5,380,000 of its shares to various purchasers. The per-share price under this private placement is US$1.30 which would result in the net proceeds of US$ $6,994,000.Tantech stock would use net proceeds resulting from private placement in its general corporate purposes and working capital needs. The private placement would close or before June 11, 2021.
Financial View of TANH stock:
A month ago, TANH stock did announce full-year 2020 financial results the highlights of which are given below.
- TANH stock revenue was reduced by $42.3 million in 2020 as compared to $49.2 million in 2019 due to the COVID-19 breakout in China. Revenue from the consumer products decreased significantly while revenue from the trading segment increased over the year.
- The gross margin for TANH stock in the year 2020 was decreased to 10.6% as compared to $12.1% in 2019.
- Gross profit showed a 25% decline in 2020 to drop at $4.5 million in comparison to $6.0 million in 2019.
Expenses for TANH stock in 2020:
- Selling expenses of TANH stock were increased by 205.3% to $1.0 million in 2020 while these expenses were $0.3 million in the year before.
- TANH stock spent $1.0 million in general and administrative expenses, 79.55 lower than the expenses of $4.7 million in 2019.
- Increased research-based activities in the electric vehicle segment and electrical battery resulted in an increase of $0.6 million in research and development expenses of Tantech stock in the year 2020.
- Other expenses of TANH stock reduced by 25.3% to $0.3 million in 2020 from $0.4 million in 2019.
Investors are responding to the announcement of a $7.0 million private placement by the TANH stock. Due to the COVID-19 outbreak, the business of Tantech Holdings was adversely affected as the government imposed strict lockdown in the country to cope with COVID-19. However, Tantech generated significant revenue from its charcoal-based products which include charcoal masks, sanitation, and air purification products.